All of 2022’s Cannabis Cup winners and where to buy them

Pink Certz, Animal Face, Spritzer, and more.

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40 weed predictions highly likely to come true in 2023

We were 74% right about 2022. Just sayin’.

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Los Angeles Cannabis Audit: Problems, Problems, Problems

On December 1, 2022, the Los Angeles Controller released a report (PDF here) with a pretty lame pun as a name: “High Maintenance: Review of the City’s Cannabis Regulation Efforts.” While the report’s name is bland, it reveals the pretty dire state of Los Angeles’s cannabis regulation and licensing. Since opening up for licensing, LA has been mired in controversies. Even for those of us who have practiced here for a long time, the report can be shocking at times. Indeed, one of the main conclusions of the report is that:

Overall, we found that the City should do more to close down unlicensed cannabis businesses, refine tools to deter additional unlicensed businesses from entering the market, monitor licensed cannabis businesses for regulatory compliance, mitigate the risk of tax evasion by cannabis businesses, and proactively determine how cannabis business tax revenue should be spent.

To say this is an understatement is itself and understatement. The report is long and I encourage anyone focused on LA cannabis to give it a hard read; or at least to read the executive summary in the first link at the top of this post. That said, I’ll highlight some of what I think are the most key points in the report.

LA has collected a LOT of tax money

Between January 2018 and December 2021, the Los Angeles Office of Finance (which collects taxes from the cannabis program) has collected a whopping $320 million in taxes, with at least $31 million more outstanding. This makes LA the largest local cannabis tax collector, possibly in the world. While we certainly won’t argue with the fact that LA cannabis operators are over-taxed, it bears noting that the actual amount of uncollected taxes may remain much higher. The report notes that the City hasn’t implemented sufficient audit structures and, given a three-year statute of limitations, may be leaving money on the table.

Either way, with all that tax money, one would imagine that the city would be doing a lot to prop up its approximately 700 licensed businesses and to shut down unlicensed and illegal operators. Well….. it turns out that’s not really happening either.

LA is doing little to nothing about the illicit market

The initial findings of the report note:

the Los Angeles Police Department (LAPD) reports that the number of known unlicensed cannabis businesses has decreased from 300 in 2018 to approximately 100 in June 2022. Though this reduction has been touted as a measure of progress, the actual number of unlicensed cannabis businesses is likely higher.

To anyone with any knowledge of LA cannabis, the idea that unlicensed businesses have decreased since 2018 is almost laughable. One of the biggest complaints our LA cannabis team hears is how difficult it is for licensed, compliant businesses to compete with the illegal market.

The extent to which the illegal market has grown, however, remains a mystery. But it is a problem, and a big one at that. Nevertheless, for all the problems the illegal market brings, the report recognizes in numerous places that the city is not doing nearly enough to stop it.

To illustrate, here’s a pretty shocking statistic: between January 2018 and June 2022, LA received more than 7,300 complaints via an online portal. During that time, a staggering 5,056 of those complaints remain completely unprocessed. Here’s what the report says:

However, more than 5,000 complaints remain unprocessed with no indication of their work status. We reviewed a limited number of unprocessed complaints and found that many could generally be categorized as follows:

• personal cannabis use, which DCR does not regulate;

• alleged unlicensed commercial cannabis activity, which would be referred to LAPD;

• quality-of-life issues in connection with a licensed cannabis business, such as customer behavior in the public, which DCR believes is outside their regulatory purview; and

• complaints against licensed cannabis businesses that DCR should investigate.

While we could not review and categorize all 5,000 unprocessed complaints, we found troubling allegations against licensed cannabis businesses, such as sales to minors and onsite cannabis consumption by employees—which are exactly the types of business behaviors and practices that DCR was established to regulate.

This ties in well to the next point.

Los Angeles licensed businesses are not adequately monitored

Not only has the city failed to respond to complaints about unlicensed cannabis activity, but it’s also not monitoring licensed cannabis businesses. In preparing the report, the Controller stopped in at six different licensed dispensaries in LA. It found regulatory violations in all of them. Here’s just a blip of what the Controller saw:

[W]e observed several regulatory violations at every dispensary we visited, including some categorized by DCR as moderate and major violations.

While most violations we observed were minor, these requirements still serve to create a well-regulated business environment. For example, five of six dispensaries we visited did not display their neighborhood liaison’s contact information. . . .

The lack of proper exit packaging at some dispensaries was also problematic. The State requires exit packaging to be: (1) child-resistant to make it difficult for children under five years of age to open; and (2) tamper-evident to indicate to the customer if the package has been opened. Three of the six dispensaries sold cannabis products without proper exit packaging and used simple paper bags instead.

Two dispensaries also had cannabis products in containers that were easily accessible to customers without the assistance of the licensee’s personnel. For example, [in one case] containers . . . were openly displayed at the counter of a dispensary we visited, allowing any customer to walk up and inspect the quality of the cannabis. If the dispensary we visited was busier, it could have been difficult to prevent customers from taking the containers home without paying for the product.

Another dispensary we visited was in the process of upgrading its walk-up window. Sales through exterior openings, such as drive-throughs or walk-up windows, are strictly prohibited under DCR’s regulations. Major violations like this can be subject to administrative fines worth up to $42,026 (three times the current license fee).

LA has way too many cooks in the kitchen

The problem is exacerbated by the fact that there are just too many cooks in the kitchen: an astonishing seven different local agencies have varying degrees of control over enforcement. In 2019, a “Cannabis Enforcement Taskforce” was formed to coordinate among the seven agencies, but it’s not done nearly enough (as seen by the fact that more than 5,000 complaints remain unresolved). Perhaps this has something to do with the fact that cannabis taxes are simply deposited into the city’s general fund and not earmarked for any specific purpose. Clearly, the agencies need to coordinate better. It would probably help if the tax money could be allocated better.

LA’s taxes need changing

If you’ve gotten this far, you might think that the report has only bad news. However, the Controller recommends lowering taxes, in part to give licensed businesses a fighting chance against illegal businesses that don’t pay any taxes.

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There’s a lot of ground to cover with respect to the LA Controller’s report. Unfortunately we can only scratch the surface in this post. As mentioned, anyone interested in LA cannabis should give the report a thorough read. Stay tuned to the Canna Law Blog for more updates on Los Angeles cannabis.

The post Los Angeles Cannabis Audit: Problems, Problems, Problems appeared first on Harris Bricken Sliwoski LLP.

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Colorado Psychedelics Decriminalization Takes Effect

Psychedelics including psilocybin are now officially decriminalized in Colorado, where voters decided last month to end criminal penalties for possessing the drugs. Colorado Governor Jared Polis issued a proclamation on Tuesday declaring that Proposition 122, also known as the Natural Medicine Health Act, had passed muster with the voters in last month’s election. 

“Coloradans voted last November and participated in our democracy,” Polis said in a statement from the governor’s office. “Officially validating the results of the citizen and referred initiatives is the next formal step in our work to follow the will of the voters and implement these voter-approved measures.”

In his proclamation, Polis noted that Colorado Secretary of State Jena Griswold had certified on December 12 that Proposition 122 “was approved by a majority of the votes cast.” The ballot measure received more than 53% of the vote in the midterm election, garnering the approval of nearly 1.3 million voters on November 8.

The Natural Medicine Health Act creates a state-regulated therapeutic system for adults to access natural psychedelic medicines, such as psilocybin mushrooms, dimethyltryptamine (DMT), ibogaine, and mescaline not derived from peyote. The measure decriminalizes the possession, cultivation, and sharing of the naturally occurring psychedelic drugs, and establishes a system for controlled distribution by licensed professionals in a therapeutic setting. 

Psychedelics will be available under the guidance of a licensed and supervised facilitator at designated healing centers and healthcare facilities such as hospice centers. The medicines are prohibited from leaving the facilities, and no retail sales are allowed in any form.

“Prop. 122 puts the wellbeing of patients and communities first, removing harsh criminal penalties for personal possession and employing a multi-phase implementation process that will allow time to develop an appropriate safety and regulatory structure,” Josh Kappel, who co-authored the proposition and led the campaign for the successful ballot measure, said in a statement on Tuesday.

Under Colorado law, ballot measures approved by the voters do not go into effect immediately. The state constitution requires the governor to issue a proclamation declaring the majority vote for the proposition no later than 30 days after the state canvasses the election results. 

Psilocybin And Mental Health

Psychedelics such as psilocybin are receiving renewed interest in the potential of the drugs to treat a wide range of mental health conditions including depression, anxiety, and substance abuse disorders. The Food and Drug Administration has designated psilocybin as a “breakthrough therapy” but has not approved the use of the drug.

Recently, the New England Journal of Medicine released a new study showing that psilocybin can quickly and significantly reduce symptoms of treatment-resistant depression. Prior research from the nation’s top medical research universities including Johns Hopkins University, the University of California-San Francisco School of Medicine, and New York University have shown positive patient outcomes for depression and anxiety. Additionally, the Department of Veterans Affairs (VA) has started offering psychedelics to patients as a part of clinical trials.

With the Natural Medicine Health Act now officially Colorado state law, the governor has until January 31, 2023, to appoint 15 members to a new Natural Medicine Advisory Board, which will advise the state’s Department of Regulatory Agencies on implementing the measure. The board’s first recommendations are due by September 30, 2023. Recommendations on a facilitator training program for the medical use of psilocybin mandated by the measure are due on January 1, 2023. Regulated access to psilocybin should become available from authorized therapists by late 2024.

Kappel said that with the proclamation from Polis, implementation of Proposition 122 can now begin.

“Our goals include creating an accessible and balanced facilitator training system, an effective equity program, a first-of-its-kind ESG screen, and safe access to natural psychedelic therapies,” Kappel said. “In the meantime, adults in Colorado can begin to have more open and honest conversations about these medicines with their doctors. Adults who can benefit from these substances will finally be able to engage in psychedelic therapies without fear of arrest and prosecution.”

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New York’s legal marijuana store opens to big crowds, happy customers

Day one of legal weed sales in New York will go down in history. Leafly was there for the smoke.

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Lawmakers buy New York’s first legal weed products

Before customers lined up to buy at Housing Works, the regulators vowed an equitable industry, then tasted the fruits of their labor.

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Snoop Dogg Unveils Death Row Cannabis

Snoop Dogg announced today that Death Row Records—the legendary West Coast hip-hop platform featuring artists like Dr. Dre, Tupac Shakur, Nate Dogg, Tha Dogg Pound, and so on—is entering the cannabis game with Death Row Cannabis. 

What kind of strains can we expect? Death Row Cannabis will initially launch a trove of OG strains including Runtz, Strawberry Gary, and Tropicana Cookies. The first drop arrives in limited edition commemorative metallic bags featuring the iconic hooded prisoner figure seated in an electric chair on the front—the image found on the Death Row Records logo if you look closely. 

Specifically designed for the Death Row Cannabis drop, the new rendering of the prisoner was designed for the launch of the cannabis brand. The main difference between the new and old images is that the new one has one hand broken free and is smoking a fat doobie.

To do this drop, and considering competition, Snoop Dogg zeroed in on one of the top cultivators around.

Who’s Growing Death Row Cannabis?

The man who curates Death Row Cannabis is the one and only, mighty AK—“hand-selected by Snoop himself.” AK is best known for his role alongside former partner Wizard Trees in sprouting, selecting, and cultivating strains such as RS11 (aka Rainbow Sherbert #11), Studio 54, and Shirazi from breeder DEO Farms. (High Times Vice President of Content Jon Cappetta profiled the high-grade cannabis grown by Wizard Trees last August.)

AK is also behind the IYKYK brand SMKRS and he is also the esteemed Vice President of Cultivation for TRP LLC, the company that owns a majority of the Cookies stores across the nation including their facilities in Florida. AK has also developed a reputation for his knack for cultivating fire OG strains. 

Death Row Cannabis will first be available at select Cookies California stores throughout California in Brentwood, San Bernardino, and San Diego on Monday, January 2, 2023, with other locations and more states to follow. 

Follow Death Row Records and Death Row Cannabis on Instagram for more details about the initial drop. The accounts posted an animation of the Death Row Records logo and revealed a branded pre-roll tube. The teaser video was created by artist GUAP with a soundtrack by Kevin Gilliam, aka DJ Battlecat.

Snoop Dogg and Death Row

Under Snoop’s recent leadership after he acquired the label, Death Row Records is making a lucrative dive into cannabis. Snoop Dogg, under Death Row Records, praised the herb from the get-go, most obviously on albums like Dr. Dre’s The Chronic and The Chronic 2001, or nearly any Snoop Dogg record. (However, Snoop’s acquisition does not necessarily include all the familiar albums.)

At its peak, Death Row Records artists seemed larger than life and defined an era—including the West Coast G-funk sound that was often imitated but not duplicated. 

“For over 30 years, through countless chart topping hits and landmark artists, Death Row Records has stood as one of the music industry’s most iconic and culturally significant platforms,” the label said in a statement. “Today, it is under powerful new management. Recently acquired and under the direction of Snoop Dogg and his family, the infamous musical empire has reemerged as a multi-category cultural platform across music, entertainment, and cannabis, all united by the blockchain for a new generation.”

Ahead of the announcement of Death Row Cannabis, Snoop Dogg acquired Death Row Records on February 10. “It feels good to have ownership of the label I was part of at the beginning of my career,” Snoop Dogg said at the time. This represents Snoop Dogg’s next move with his new platform.

Stay tuned for more drops from Death Row Cannabis, soon to follow.

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